4 reasons why you need a fleet of electric vehicles

Over 19 million people who are currently driving internal combustion engine cars want to switch to an electric vehicle (EV) instead, according to new research. And they aren’t alone.?

A quarter (24%) of companies with a fleet have already switched some of their vehicles to battery electric vehicles (BEVs) or plug-in hybrids (PHEVs), with many more companies thinking of following suit. Local authorities across the UK have also grown their electric fleets from 596 in 2017 to 2,851 in 2021.

If your client is considering a shift to a greener fleet, here are the four key benefits of doing so.?

1. Reduces carbon footprint

Air pollution is the biggest environmental threat to health in the UK, with 28,000-36,000 deaths a year attributed to long-term exposure. Petrol and diesel cars contribute to high levels of air pollution, so a fleet of EVs would be helping the environment.

Businesses can lower their carbon footprint, especially if employees are driving nationwide, and can support the UK’s transition towards a low carbon future.

2. Lower costs and financial incentives

EVs are cheaper to run in the long-term than petrol or diesel cars. There’s no Vehicle Excise Duty, you don’t need to pay congestion charges in London, and maintenance is cheaper.

There are also tax benefits to having an EV fleet, including benefit in kind tax advantages for company car drivers and reduced Class 1A National Insurance contributions.

The cost and availability of charging points may deter business owners from switching to EVs. As a response, the government introduced an EV chargepoint grant that provides funding of up to 75% towards the cost of installing EV smart chargepoints at domestic properties across the UK.

Businesses can also use the Workplace Charging Scheme, a voucher-based scheme that provides support towards the up-front costs of purchasing and installing EV chargepoints.

3. Easier access on roads

London Mayor Sadiq Khan plans to expand the ￡12.50-a-day Ultra Low Emission Zone (ULEZ) to cover the whole of London – at the moment, ULEZ covers all areas within the North and South Circular Roads.

With more cities introducing ULEZ, and some areas only wanting to give access to zero-emission vehicles beyond certain dates, a fleet of EVs would ensure you get free access to all areas across the country.

4. Improves business reputation

Having a green fleet is just one-way businesses can show employees they’re working to improve sustainability.

67% of employees want their workplaces to become more sustainable and 62% would be more likely to work for a sustainable company. A greener fleet, as a result, is likely to help attract and retain staff.

Consumers are also wanting to buy from brands that have strong green credentials. So a green fleet can be one way for businesses to build a reputation as an environmentally-friendly company.

At NIG, we have extended our Fleet & Mini Fleet wordings to include cables and batteries for EVs, as well as chargers installed at employee homes.

Speak to your local underwriter to find out more about our EV insurance capabilities.